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Indonesia Pupuk Kalimantan Timur Case Study Snapshot

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Global Energy Management System Implementation: Case Study Indonesia 1 Pupuk Kalimantan Timur was the first and the only fertilizer plant certified ISO 50001 in Southeast Asia since 2016. Pupuk Kaltim, the largest fertilizer company in Southeast Asia, achieved cost saving USD 3,921,855 through EnMS. Organization Profile & Business Case Company Profile: PT Pupuk Kalimantan Timur (Pupuk Kaltim) as state-owned company under Pupuk Indonesia Holding Company (PIHC group) was established on December 7, 1977, located in Bontang, Indonesia. Pupuk Kaltim has 5 (five) ammonia-urea plants i.e. PKT- 2/3/4/5/1A and 2 (two) NPK Plants. Since 2015 Pupuk Kaltim has become the largest integrated ammonia-urea plant in the Southeast Asia, producing 3.43 million tons of urea, 2.74 million tons of ammonia and 350 thousand tons of NPK per year. Annually, Pupuk Kaltim delivers its products in domestic and exports to the countries in four continents. EnMS Drivers and Goals: Core Business Driver Energy cost, mostly from natural gas, represents the largest (up to 40%) of production cost factors in the fertilizer industry. In 2015, Pupuk Kaltim signed new co ntract of natural gas which has increased 66.7% USD/mmbtu. Moreover, global ammonia and urea prices continued to weaken throughout 2015-2018 and are predicted continue its trend. This condition is aggravated with the sharp increase of rupiah dollar ratio that resulted loss USD 13,980,202 in 2016. The loss occurred due to the fact that Pupuk Kaltim buys natural gas in dollars and sells some of the products domestically to meet the requirement of Public Service Obligation (PSO). Pupuk Kaltim experienced a critical condition at the end Case Study Snapshot Industry Petrochemical Product/Service Ammonia, Urea, and Utility Location PKT-3 Plant and PKT-1A Plant Energy management system ISO 50001 Energy performance improvement period 2.5 years (PKT-3) 1 year (PKT-1A) Energy Performance Improvement (%) over improvement period 5.45% for PKT-3 0.65% for PKT-1A or 3.76% (aggregate) Total energy cost savings over improvement period USD 3,696,325 for PKT-3 USD 225,529 for PKT-1A Total: USD 3,921,855 Cost to implement EnMS USD 91,830 Total Energy Savings over improvement period 813,180 GJ for PKT-3 53,082 GJ for PKT-1A Total: 866,262 GJ Total CO 2 -e emission reduction over improvement period 40,896 metric tons for PKT-3 2,670 metric tons for PKT-1A Total: 43,565 metric tons Figure 1. PKT-1A (left) and PKT-3 (right) of Pupuk Kaltim Figure 2. EnMS Implementation Road Map of Pupuk Kaltim
Transcript
Page 1: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

Global Energy Management System Implementation: Case Study

Indonesia

1

Pupuk Kalimantan Timur was the first and the only fertilizer plant

certified ISO 50001 in Southeast Asia since

2016. Pupuk Kaltim, the largest fertilizer

company in Southeast Asia, achieved cost

saving USD 3,921,855 through EnMS.

Organization Profile & Business Case

Company Profile: PT Pupuk Kalimantan Timur (Pupuk

Kaltim) as state-owned company under Pupuk Indonesia

Holding Company (PIHC group) was established on

December 7, 1977, located in Bontang, Indonesia. Pupuk

Kaltim has 5 (five) ammonia-urea plants i.e. PKT-

2/3/4/5/1A and 2 (two) NPK Plants. Since 2015 Pupuk

Kaltim has become the largest integrated ammonia-urea

plant in the Southeast Asia, producing 3.43 million tons

of urea, 2.74 million tons of ammonia and 350 thousand

tons of NPK per year. Annually, Pupuk Kaltim delivers its

products in domestic and exports to the countries in four

continents.

EnMS Drivers and Goals:

Core Business Driver

Energy cost, mostly from natural gas, represents the

largest (up to 40%) of production cost factors in the

fertilizer industry. In 2015, Pupuk Kaltim signed new

contract of natural gas which has increased 66.7%

USD/mmbtu. Moreover, global ammonia and urea prices

continued to weaken throughout 2015-2018 and are

predicted continue its trend. This condition is aggravated

with the sharp increase of rupiah dollar ratio that

resulted loss USD 13,980,202 in 2016. The loss occurred

due to the fact that Pupuk Kaltim buys natural gas in

dollars and sells some of the products domestically to

meet the requirement of Public Service Obligation (PSO).

Pupuk Kaltim experienced a critical condition at the end

Case Study Snapshot

Industry Petrochemical

Product/Service Ammonia, Urea, and Utility

Location PKT-3 Plant and PKT-1A Plant

Energy management system

ISO 50001

Energy performance improvement period

2.5 years (PKT-3)

1 year (PKT-1A)

Energy Performance Improvement (%)

over improvement period

5.45% for PKT-3

0.65% for PKT-1A

or 3.76% (aggregate)

Total energy cost savings

over improvement period

USD 3,696,325 for PKT-3

USD 225,529 for PKT-1A

Total: USD 3,921,855

Cost to implement EnMS USD 91,830

Total Energy Savings

over improvement period

813,180 GJ for PKT-3

53,082 GJ for PKT-1A

Total: 866,262 GJ

Total CO2-e emission reduction

over improvement period

40,896 metric tons for PKT-3

2,670 metric tons for PKT-1A

Total: 43,565 metric tons

Figure 1. PKT-1A (left) and PKT-3 (right) of Pupuk Kaltim

Figure 2. EnMS Implementation Road Map of Pupuk Kaltim

Page 2: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

2

Global Energy Management System Implementation: Case Study

Indonesia

of 2016. It can be seen in Figure 3 where in October-

December 2016 production cost of Pupuk Kaltim was

higher than global market price. To survive, production

cost reduction is absolutely a necessary and notably

focused on natural gas efficiency as the most significant

subject.

Figure 3. Cost of Goods Sold vs Price of Ammonia and Urea

Survival Driver

▪ Establishing a system to ensure sustainability of

energy efficiency programs which was still sectoral

and unstructured in Pupuk Kaltim.

▪ To achieve Gold-the highest award in PROPER

(National Program for Assessment of Company’s

Performance Rating in Environmental Management).

▪ Beyond comply to government regulation (PP No.

70/2009) about energy conservation.

▪ Pupuk Kaltim as state-owned company participate in

the government's commitment program to reduce

834 million tons of CO2e in the unconditional target

(CM1) and by 1,081 million tons of CO2e on the

conditional target (CM2) in 2030.

“Energy efficiency and innovation are two

success keys to survive in disruption era, I do

not want to hear that there was once a huge

factory ever stood up here.” —Bakir Pasaman, President Director

Business Benefits Pupuk Kaltim initially implemented ISO 50001 at

PKT-3 since April 2016 and continued by replication at

PKT-1A in January 2018 with total implementation cost

of USD 91,830 resulting:

Tangible Benefits:

Financial Benefit: Cost saving USD 3,921,855 calculated

based on energy performance gap between actual

energy consumption compared to baseline, then can be

described in the cumulative of sum (CUSUM) (see Figure

4). Baseline is set refers to ISO:50006/SNI 8669:2018

level 3, EnPI type 3 (regression method), for PKT-3 based

on best year April 2015-March 2016 and for PKT-1A

January-December 2017. Baseline is set for unit

ammonia, urea and utility with sub unit thermal and

electricity.

Figure 4. CUSUM of Energy Saving PKT-3 and PKT-1A

Additional benefit of USD 2,822,066 was earned by LCC

implementation in the procurement of more efficient LTS

catalyst and Primary Reformer Catalyst in 2017-2018.

Environmental Benefit: CO2 reduction of 43,565 ton

equivalent during 2016-2018, since the main energy

source was natural gas, then CO2 reduction calculated

based on energy saving (in mmbtu) multiplied by CO2

emission factor 53.06 kg CO2/mmbtu.

Water conservation of 400,769 m3 during 2016-2018

calculated based on reduction of turbine steam

consumption which was one of the action plan programs.

Productivity Benefit: Increasing yield 1.3% in ammonia

converter lead to product increase 22 ton/day resulted

from upgrading ammonia reactor type and more

efficient catalyst replacement at PKT-3.

Pupuk Kaltim has the lowest energy cost/unit product

among fertilizer company in Indonesia.

Intangible Benefits: With the implementation of ISO

50001, the following are intangible benefits:

▪ Success story of Pupuk Kaltim on 3.76% energy saving

inspired headquarter to implement EnMS at all of

subsidiaries consisting 4 (four) other companies

which consume total energy of 6,012,638 TOE. If it is

assumed that % energy saving equal to Pupuk Kaltim,

the CO2 reduction potential reaches 475,791ton

equivalent/year.

Page 3: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

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Global Energy Management System Implementation: Case Study

Indonesia

▪ Improving energy-saving culture seen by innovation

for energy efficiency has increased from 85 small

group activity (SGA) in 2015 to 168 SGA in 2018.

▪ Increasing competitiveness of Pupuk Kaltim in global

market by obtaining 5 (five) new destination countries

and 10 (ten) new customers during 2016-2018.

▪ Pupuk Kaltim has been publishing sustainability

report based on GRI since 2011 and implementation

of EnMS gives an additional point.

▪ 1st winner in innovation competition at National

Energy Efficiency Award (PEEN) for large industry

category in 2018.

▪ In 2017 and 2018, Pupuk Kaltim has received Gold-the

highest award in PROPER assessment out of 1906

industry participate in national level.

▪ Achievement as world class industry by Global

Performance Excellence Award (GPEA) in 2018.

Benefits of Multiple Sites Approach:

▪ Larger impact in cost saving (see Figure 4). Initial

implementation at PKT-3 earned a total cost saving of

USD 1,022,860, and with the addition of PKT-1A

resulted sharper slope in cost saving aggregate graph.

▪ Implementation cost saving of USD 47,267. Initial

Implementation cost at PKT-3 was USD 69,548 while

replication at PKT-1A spent cost of USD 22,281.

▪ Cutting implementation period. Initial

PKT-3 implementation project needed 18

months to set up EnMS system and shall

be assisted by consultant, while

replication at PKT-1A needed only 5

months and can be conducted by internal

Energy Team.

Figure 5. Budget Allocation 2016-2018

Plan Top Management Commitment: Throughout the

implementation of ISO 50001 in 2016-2018, top

management has committed to provide necessary

resources in term of budget totaling of USD 141,233,904

(as shown in Figure 5).

Top management appoints dedicated implementation

team named “Tim Champion” and facilitates with

adequate training programs (decanted in “SiPejabat”

training syllabus) to ensure personnel competency.

Furthermore, Top Management provide additional

budget to triple reward for energy efficiency innovation

programs in the event of “Pupuk Kaltim Innovation

award (PIA)”.

Top Management willing to take a risk to issue a

Decree for the implementation of the procurement

based on LCC even though it was very risky in auditing

term as a state-owned company.

Energy Review, Baseline, and EnPI: Pupuk Kaltim has a real-time online monitoring data in all plants for a basis to analyze and identify SEUs i.e. thermal and electricity. The Baseline is set on daily basis for each level. For ease energy planning, each level is divided into several sub-units based on the energy used on that unit. For example, Ammonia (lv.2) is divided into Ammonia Thermal and Ammonia Power (lv.3) as shown detail in Figure 6. Baseline period was set for 1-year operation after Turn

Around (annual maintenance), considered as the best

plant performance, with normalization by eliminating

start-up and shutdown data.

Figure 6. Baseline Levelling and EnPI

Objective & target: 3% energy saving target equivalent

to USD 7,400,768 by 2021 was top-down base according

to long term corporate plan 2017-2021 that passed into

“Corporate Energy Planning Document” with target in

Level SEU Driver Baseline R2 EnPI

3A (Ammonia Thermal) Primary Reformer Ammonia product Y = 9.23A + 8,552 0.9895 mmbtu

3B (Ammonia Power) Lean Sol. Pump, ID Fan Primary Reformer Ammonia product Y = 0.38A + 376 0.9946 mmbtu

3C (Urea Thermal) CO2 turbine compressor Urea product Y = 3.79A + 3,737 0.9974 mmbtu

3D (Urea Power) HP Ammonia pump, HP Carbamate pump Urea product Y = 0.23A + 60 0.9949 mmbtu

3E (Utility Thermal) Gas turbine generator, waste heat boilerElectricity &

Steam productY = 0.01A + 2.79B + 6,658 0.9923 mmbtu

3F (Utility Power) Sea water pump Sea water flow Y = 0.16A - kwh/m3

3F-A (Utility Thermal A) Desalinasi A Distilate Desal A Y = 0.46A - mmbtu/m3

3F-B (Utility Thermal B) Desalinasi B Distilate Desal B Y = 0.51A - mmbtu/m3

3A (Ammonia Thermal)Primary Reformer, Syngas turbine

compressorAmmonia product Y = 8.02A + 21,745 0.9923 mmbtu

3B (Ammonia Power) Semi lean Sol. Pump, Flue Gas Blower Ammonia product Y = 0.27A + 1,282 0.9796 mmbtu

3C (Urea Thermal) CO2 turbine compressor, HP Stripper Urea product Y = 3.56A + 2,474 0.9863 mmbtu

3D (Urea Power)Granulator scrubber exhaust fan,

atomization air blowerUrea product Y = 1.26A + 2,281 0.9111 mmbtu

3E (Utility Power) Sea water pump Sea water flow Y = 0.15A + 52,098 0.9704 kwh/m3

3F-A (Utility Thermal A) Desalinasi A Distilate Desal A Y = 0.56A + 431 0.9450 mmbtu/m3

3F-B (Utility Thermal B) Desalinasi B Distilate Desal B Y = 0.54A + 115 0.9948 mmbtu/m3

3F-C (Utility Thermal C) Desalinasi B Distilate Desal C Y = 0.67A + 27 0.9686 mmbtu/m3

PKT-3

PKT-1A

Page 4: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

4

Global Energy Management System Implementation: Case Study

Indonesia

2021 all the plants are implemented

EnMS based on ISO 50001.

Figure 7. Energy Planning of Pupuk Kaltim 2018

Eco List and Action Plan: Based on

efficiency target, the energy conservation

opportunity (ECO) list is identified from:

detail audit by UNIDO, inhouse energy

audit by internal nationally certified

energy auditor, forum group discussion, as well as energy

patrol. Moreover, ECO list will be classified into

operational (no cost), investment, or turn around.

Operational ECO list directly turned into action plan

program. Investment and turn around ECO list will be an

action plan programs through “Risk Matrix Scoring”.

Energy efficiency converted to value of money by Plant

Performance Engineer (PPE) subject to score in financial

regime. Higher score in risk matrix represent the priority

of action plan.

Figure 9. Procedure of Risk Matrix Scoring

Investment program is proposed in the annual corporate

budget planning and will be approved when IRR > 12%.

Development for Multiple Sites: The replication in other

plant was carried out by separate operational control

and action plan team under one coordination structure

line. The evaluation of energy Performance was

conducted to each plant individually and reported to Top

Management. The development of personnel and

system set-up for PKT-1A has improved from lesson

learnt in PKT-3 implementation.

“I’m glad to be a part of energy team, EnMS

makes you know that it’s playing golf, not

just playing games”

—Bagya Sugihartana, Production Director

Do, Check, Act Implementation Action Plan: The following are the top

pr

Cost ($USD)

Saving ($USD)

Cost ($USD)

Saving ($USD)

Cost ($USD)

Saving ($USD)

Operasional program (no-low cost)

1 Reducing Steam/Carbon ratio in Primary Reformer

(PKT-3: 3.4 to 3.2; PKT-1A: 3.05 to 2.95)

- 26,638 - 57,918 - 307,404

2 Off gas utilization to reduce natural gas consumption

in Primary Reformer (PKT-3: 5%; PKT-1A: 3%)

- 27,970 - 46,334 - 140,837

3 Reducing O2 excess in flue gas Reformer from 1,2% to

0,9%

- 9,323 - 11,584 - 33,628

PKT-3 4 Trimming operation condition to increase LS admission

to CO2 Turbine

63,203 365,362

Investment program

PKT-3 1 Upgrade Ammonia Converter (S200 --> S300) 3,812,666 332,979 - 378,691 - 568,787

PKT-3 2 Modification of fuel spray nozzle GTG (from 8 to 16

holes)

320,283 55,497 - 81,085 - 168,676

PKT-3 &

PKT-1A

3 Catalyst replacement with more energy efficient (PKT-

3: Primary Reformer; PKT-1A: Primary Reformer & LTS)

379,572 28,959 1,411,351 498,382

PKT-1A 4 Upgrade 4 chlorination continous dosing pump IEC3

based

72,036 30,137

5 Innovation: SEUs online monitoring 6,667

Turn around program

1 Overhaull CO2 Compressor 79,333 18,589 39,667 131,923

2 Catalyst loading uses a catalyst primary tube reactor

pressure difference meter (patent no: IDS0001180)

- 5,792 - 18,090

3 Speed up the ignition of the burner with a fire igniter

(patent no: IDS000001352)

- 5,056 1,332

Additional Saving:

Catalyst procurement based on LCC methode (LTS &

Primary Reformer)

1,359,150 1,462,916

4,139,616 452,408 458,906 2,056,361 1,523,053 3,727,473

PKT-3 &

PKT-1A

PKT-3 &

PKT-1A

TOTAL

2016 2017 2018Energy Performance Improvement Program

ograms that have been implemented:

Figure 10. Energy Performance Improvement Program 2016-2018

Pupuk Kaltim has an annual event named “Pupuk Kaltim

Innovation Award” which is to reward employee

Almost

impossible

(1)

Not likely

to occur

(2)

Could Occur

(3)

Known to

occur (4)

Common

occurrence

(5)

Financial

and Asset

Loss

Health and

Safety

Environmental

ImpactsProduction

Customer

Complaint

Reputational

Damage

1-5

Occurrence/y

ear

6-10

Occurrenc

e/year

11-20

Occurrence/y

ear

21-50

Occurrence/y

ear

>50

Occurrence/y

ear

Catastrop

hic (5)

> Rp 100

Milyar

One or more

fatalities for

employees

Environmental

pollution that

causes legal

claim

Plant shutdown

for more than 5

days

Written

complaints

more than 15

a year

Publicity loss

of reputation

in more than

5 national

media

5 10 15 20 25

Major (4)

> Rp 50

Milyar - Rp

100 Milyar

Work accident

that causes

disabilities and

shall treatment

outside

BONTANG

Off-site release

that effects on

community

health and led

to protests

Plant shutdown

for up to 5 days

Written

complaints 10-

15 a year

Publicity loss

of reputation

in 1-2

national

media

4 8 12 16 20

Moderate

(3)

> Rp 25

Milyar - Rp

50 Milyar

Work accident

that causes

minor injuries

and shall be

hospitalization

Off-site release

that effects on

community

inconvenience

Short term

production rate

cutback

Written

complaints 5-

10 a year

Province loss

of reputation 3 6 9 12 15

Minor (2)

> Rp 5 Milyar

- Rp 25

Milyar

Work accident

that causes

veryshort-term

health

concerns

Off-site release

that effects on

corporate area

Plant

interuption led

to localized

repair

Written

complaints 1-

4 a year

Local

community

loss of

reputation

2 4 6 8 10

Insignifica

nt (1)

up to 5

Milyar

Rupias

Work accident

that causes

first aid

injuries

Minor localised

off-site release

with

insignificant

effects

Insignificant

plant

interuption

Verbal

complaints

internal loss

of reputation 1 2 3 4 5

Regimes

Po

ten

tial

Co

nse

qu

ence

s

Probability

Figure 8. Risk Matrix Scoring

Page 5: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

5

Global Energy Management System Implementation: Case Study

Indonesia

innovation in term of energy improvement. Several

innovations were patented (see Figure 10 item turn

around). Throughout 2016-2018, twenty-one SGAs

awarded nationally (6 golds, 13 platinum and 2

diamonds) and seven SGAs were appreciated the highest

award in global level (6 ICQCC dan 1 APQC).

Design and Procurement: One of the biggest investment

decisions to improve energy performance was the

replacement of the PKT-3 ammonia reactor in early 2016

with the latest version of the reactor (type S300) which

costs around 63% of the total cost from 2016 to 2018

(Figure 10) resulted greatest impact on energy saving of

0.35 GJ/ton product. Furthermore PKT-1A has upgraded

its 4 (four) chlorination continuous dosing pump to IEC3

grade to achieve electricity consumption efficiency up to

3.5%. In case of catalyst procurement, Energy team

proposed the tender evaluation based on LCC to

response the energy policy. This proposal has been

approved by Top Management and LCC has been set as

SOP in procurement. Implementation of this procedure

resulted in saving of USD 2,822,066 by LTS catalyst and

Primary Reformer catalyst purchasing in 2017-2018.

Capacity Building: To fulfill the competency requirement

of the team based on “SiPejabat” training syllabus, 709

personnel were trained from 2015-2018. In 2018 Pupuk

Kaltim has 8 (eight) and 7 (seven) nationally certified

energy manager and energy auditor respectively.

Monitoring Measurement Plan: Energy team has

prepared monitoring measurement plan to ensure

operational control quality and energy performance

improvement.

Figure 11. SEU’s Online Monitoring

For operational control, Pupuk Kaltim has been

implementing industry 4.0 concept where the critical

parameter was integrated to DCS (distributed control

system). Key operating parameter (KOP) was constrained

in threshold limit and it is connected to alarm to warn

SEU operator to response based on action guidance

(operating window). All of the KOP data and SEU

operator action were monitored in SEUs Online

Monitoring for investigation purpose in daily energy

meeting. The un-solved problem/situation to be

reviewed in Monthly Comprehensive Energy Meeting.

Figure 12. Aggregate of energy efficiency improvement 2016-2018

For objective target accomplishment, operational

data from DCS is compared to daily baseline equations to

get energy efficiency improvement as shown in Figure

12. From 2016-2018, Pupuk Kaltim has reached 3.76% on

energy efficiency and satisfy the top management’s

target. For energy performance improvement shown in

CUSUM (see Figure 13) will be reported to top

management monthly.

Figure 13. Energy Review Document of Pupuk Kaltim

Doc No. : WI-PPE-002

Rev : 1

Date : August 6, 2018

Page : 1 of 12

LEVEL 1: PKT-1A PT PUPUK KALIMANTAN TIMUR

Ammonia

Product

(X1)

Urea

Product

(X2)

Actual

Energy*

Expected

Energy**

ton ton mmbtu mmbtu mmbtu % mmbtu % USD

Jan-18 38,102 31,697 566,554 542,016 24,538 4.53% 24,538 4.53% 105,512

Feb-18 50,784 44,996 738,059 738,184 (125) -0.02% 24,413 1.91% 104,976

Mar-18 52,465 46,406 773,160 761,864 11,296 1.48% 35,709 1.75% 153,547

Apr-18 52,566 46,244 771,222 761,665 9,557 1.25% 45,266 1.61% 197,032

May-18 34,122 30,091 503,497 497,346 6,150 1.24% 51,416 1.56% 225,017

Jun-18 17,807 11,275 248,728 233,758 14,970 6.40% 66,386 1.88% 293,130

Jul-18 42,717 19,506 469,216 501,377 (32,160) -6.41% 34,226 0.85% 155,805

Aug-18 55,308 43,181 719,027 765,015 (45,988) -6.01% (11,762) -0.24% (40,563)

Sep-18 48,804 46,793 722,368 733,032 (10,664) -1.45% (22,426) -0.41% (86,098)

Oct-18 46,821 43,041 682,868 691,360 (8,492) -1.23% (30,918) -0.50% (128,560)

Nov-18 52,939 42,537 728,015 740,478 (12,463) -1.68% (43,381) -0.62% (190,874)

Dec-18 58,902 34,474 731,610 738,541 (6,931) -0.94% (50,312) -0.65% (225,529)

* Actual Energy = (NG Fuel + Steam Import 80kg/cm2g + Electricity Import)

** Expected Energy (y) = 8,57 X1 + 6,58 X2 + 6.983

Review

-

-

-

Analysis

- Energy Baseline January 2018 hasn't changed.

- Energy performance indicators (ENPIs) used are still relevant and no changes.

ENERGY CONSUMPTION DIFFERENCE CUSUM

PT PUPUK KALIMANTAN TIMUR

Management Representaive

PKT-1A energy performance in December 2018 is more efficient 001% compared to energy baseline, equivalent to a saving of 6931.114 mmbtu.

PKT-1A's cummulative energy performance since January 2018 to December 2018 is more efficient compared to energy baseline 50312.295 mmbtu equivalent to 225529.495

Cummulatively, the total energy saving of PKT-1A until December 2018 is 001%, hasn't achieved the energy saving target of 0,6% stated in Long-Term Corporate Plan of PT

Pupuk Kalimantan Timur.

ENERGY REVIEW

PKT-1ADecember-18

CUSUM

Finance

MONTH ENERGY DRIVER

14-Jan-19 17-Jan-19

Position

Name

Signature

Date 12-Jan-19

M. Arief Rusdi

Energy Planning Coordinator

Erna Rokhayati

Person in Charge SMEn

Sivera Dian Getrida

4.53%1.91%

1.75%

1.61%1.56%

1.88%

0.85%

-300K

-200K

-100K

0K

100K

200K

300K

400K

-60K

-40K

-20K

0K

20K

40K

60K

80K

USD

mm

btu

CUSUM PKT 1A

Cusum PKT1A (mmbtu) Cusum Finance (USD)

4,53%1,91%

1,75%

1,61%1,56%

1,88%

0,85%

-0,24%

-0,41%-0,50%

-0,62%-0,65% -300K

-200K

-100K

0K

100K

200K

300K

400K

-60K

-40K

-20K

0K

20K

40K

60K

80K

USD

mm

btu

CUSUM PKT 1A

Cusum PKT1A (mmbtu) Cusum Finance (USD)

Page 6: Indonesia Pupuk Kalimantan Timur Case Study Snapshot

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Global Energy Management System Implementation: Case Study

Indonesia

Verification and Validation: Pupuk Kaltim has no issue

related to equipment calibration since Pupuk Kaltim is

certified ISO 17025. The monitoring measurement plan

is verified by internal nationally certified energy manager

and energy auditor refers to protocol ISO 50015/SNI

8670 and to be validated directly by top management.

Energy performance was daily reported to Pupuk

Indonesia Holding Company as 2nd party and yearly

reported to government as 3rd party via POME (Online

Energy Management Reporting System). Pupuk Kaltim is

waiting for the government confirmation on the

assignment of certified verifier in March 2019.

Internal Audit and Management Review: Internal audit

was performed annually by internal certified auditor

while annually Management Review is lead by Board of

Director.

Transparency

Pupuk Kaltim publishes achievements related to

energy efficiency and the success story of ISO 50001

implementation through corporate public relation

mechanism on media as follows:

Internal Organization: internal Web Portal

(portal.pupukkaltim.com).

External Organization: Social media and official website

on www.pupukkaltim.com, Videotrons located at Pupuk

Kaltim neighborhood and Vendor Gathering (routine

meeting with all vendors and share energy policy related

to procurement process in Pupuk Kaltim area).

For energy efficiency performance verification,

Pupuk Kaltim as state-owned company reported the

confidential data to:

1. Daily report of energy performance to Pupuk

Indonesia Holding Company.

2. To Indonesian Ministry of Energy and Mineral

Resources via Online Energy Management Reporting

System (POME). The reported data include energy

consumption (type of energy and intensity), energy

efficiency in energy user equipment.

3. To Indonesian Ministry of Industrial via National

Industrial Information System (SIINas) to update

industrial performance as a basis data for national

industrial development.

4. To Indonesian Ministry of environment and forestry

via PROPER.

5. To announce globally via publishing sustainability

report.

6. To announce nationally via innovation competition

at National Energy Efficiency Award (PEEN)

Lessons Learned

• Pupuk Kaltim has 8 (eight) and 7 (seven) nationally

certified energy manager and energy auditor

respectively that successfully self-replicated EnMS

at PKT-1A. However, additional energy manager

and energy auditor is required to implement ISO

50001 in whole PKT’s plants.

• Energy was additional point in innovation scoring.

Furthermore, Pupuk Kaltim has to formulate a

better version of awarding system. Energy team

propose some value of innovation saving is given to

the innovator after validating by accountant

department at certain period.

• Replication APC (Advanced Process Control) of PKT-

1A to other plants.

Through the Energy Management Working Group (EMWG), government officials worldwide share best practices and leverage their collective

knowledge and experience to create high-impact national programs that accelerate the use of energy management systems in industry and

commercial buildings. The EMWG was launched in 2010 by the Clean Energy Ministerial (CEM) and International Partnership for Energy Efficiency

Cooperation (IPEEC).

For more information, please visit www.cleanenergyministerial.org/energymanagement.


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